📊 LC Key Takeaways
Is LC a Good Investment? Thesis Analysis
LendingClub exhibits unsustainable negative operating cash flow of -$2.7B despite reporting 164% net income growth, indicating profitability is disconnected from cash generation. Revenue declining 3.7% year-over-year combined with severe cash burn threatens long-term viability, even with a clean balance sheet and $930.4M cash position that provides limited runway.
Why Buy LC? Key Strengths
- Zero long-term debt with clean balance sheet provides financial flexibility
- Strong net income growth of 164% YoY and EPS growth of 158% YoY demonstrates operational profitability
- Solid operating margin of 18.4% and net margin of 14.1% show reasonable cost control
LC Investment Risks to Consider
- Catastrophic negative operating cash flow of -$2.7B makes current business model unsustainable without external funding
- Free cash flow of -$2.9B combined with declining revenue indicates deteriorating business fundamentals
- Interest coverage ratio of 0.5x signals insufficient operating income relative to interest obligations despite low debt burden
- Profitability growth appears disconnected from cash generation, raising questions about accounting quality and sustainability
Key Metrics to Watch
- Operating cash flow trend - critical to determine if negative OCF is temporary or structural
- Revenue momentum - must stabilize decline to support long-term viability
- Cash depletion rate given current burn - with $930.4M cash and -$2.7B annual OCF, runway is critically short
LC Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
LC Profitability Ratios
LC vs Default Sector
How LendingClub Corp compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is LC Overvalued or Undervalued?
Based on fundamental analysis, LendingClub Corp has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
LC Balance Sheet & Liquidity
LC 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: LendingClub Corp's revenue has grown significantly by 51% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.36 reflects profitable operations.
LC Growth Metrics (YoY)
LC Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2020 | $74.7M | -$383.0K | N/A |
| Q2 2020 | $43.9M | -$9.6M | N/A |
| Q1 2020 | $120.2M | -$19.9M | N/A |
| Q3 2019 | $184.6M | -$383.0K | $0.00 |
| Q2 2019 | $177.0M | -$9.6M | $-0.12 |
| Q1 2019 | $151.7M | -$19.9M | $-0.05 |
| Q3 2018 | $138.9M | -$6.5M | $-0.02 |
| Q2 2018 | $136.9M | -$25.4M | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LC Capital Allocation
LC SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for LendingClub Corp (CIK: 0001409970)
📋 Recent SEC Filings
❓ Frequently Asked Questions about LC
What is the AI rating for LC?
LendingClub Corp (LC) has an AI rating of SELL with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are LC's key strengths?
Claude: Zero long-term debt with clean balance sheet provides financial flexibility. Strong net income growth of 164% YoY and EPS growth of 158% YoY demonstrates operational profitability.
What are the risks of investing in LC?
Claude: Catastrophic negative operating cash flow of -$2.7B makes current business model unsustainable without external funding. Free cash flow of -$2.9B combined with declining revenue indicates deteriorating business fundamentals.
What is LC's revenue and growth?
LendingClub Corp reported revenue of $961.5M.
Does LC pay dividends?
LendingClub Corp does not currently pay dividends.
Where can I find LC SEC filings?
Official SEC filings for LendingClub Corp (CIK: 0001409970) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is LC's EPS?
LendingClub Corp has a diluted EPS of $1.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is LC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, LendingClub Corp has a SELL rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is LC stock overvalued or undervalued?
Valuation metrics for LC: ROE of 9.0% (sector avg: 15%), net margin of 14.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy LC stock in 2026?
Our dual AI analysis gives LendingClub Corp a combined SELL rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is LC's free cash flow?
LendingClub Corp's operating cash flow is $-2.7B, with capital expenditures of $140.3M. FCF margin is -298.2%.
How does LC compare to other Default stocks?
Vs Default sector averages: Net margin 14.1% (avg: 12%), ROE 9.0% (avg: 15%), current ratio N/A (avg: 1.8).